To choose health insurance for your small business, start with your monthly budget per employee, survey your team on coverage priorities, then compare group plans, health sharing programs, and HRAs side by side. Work with an independent advisor who compares options across multiple carriers. Small group plans have no set enrollment window, so you can start coverage any time of year.
Choosing small business health insurance for your team isn’t just about picking the cheapest plan. It’s about finding the right balance between what you can afford to contribute and what your employees will actually use and value.
Most small business owners spend hours Googling plan options and still aren’t sure they made the right call. The reason is usually the same: they’re comparing premiums without looking at total cost, or they’re choosing a plan that works on paper but doesn’t fit their team’s actual needs.
At Lannum Insurance Services in Tulsa, Oklahoma, we help small business owners work through this decision step by step. This guide covers how to approach that process clearly, from setting a budget to picking the right plan type and claiming available tax credits.
How Do You Start Choosing a Health Insurance Plan?
Start with your budget before you look at any plan. Decide how much you can contribute per employee each month, then work outward from that number.
According to HealthCare.gov, employers generally contribute 50-80% of the employee-only premium. For a five-person team, even a $300 per-person monthly contribution adds up to $18,000 a year. Know that number before comparing options.
Two other questions to answer upfront:
- Do you want a fixed, predictable cost (HRA) or a shared-risk arrangement (group plan)?
- Are you open to alternatives like health sharing plans if the savings are significant enough?
What Do Your Employees Actually Need?
The best plan on paper fails if your employees don’t value it. Talk to your team before choosing coverage. A short survey asking about doctor preferences, prescription use, and family situations takes 10 minutes and saves months of complaints.
What to find out:
- Do employees have ongoing conditions or regular prescriptions that need immediate coverage?
- Do they have preferred doctors or specialists they’d need in-network?
- Are they adding spouses, newborns, or dependents? Those qualifying life events change which plan type makes most sense.
Our FAQs page covers common employee coverage questions you’re likely to hear after you enroll.
Which Plan Type Is the Right Fit for Your Team?
There’s no universal answer. Each plan type has a use case it fits well and a situation where it breaks down.
Health sharing plans cost around 40% less than group insurance but exclude pre-existing conditions for 12-36 months. If your team is generally young and healthy, that’s often an acceptable tradeoff. If several employees have chronic conditions, a traditional group plan protects them better from day one.
Visit our medical insurance services page to see how we compare these options for businesses in Tulsa and surrounding areas.
Plan Types at a Glance
| Plan Type | Monthly Cost Range | Best For | Key Limitation | ACA-Compliant |
| Group Health Plan | $400-$800/employee | Full coverage, all team sizes | Highest employer cost | Yes |
| Health Sharing Plan | $300-$500/member | Healthy teams wanting savings | No pre-existing coverage (12-36 mo) | No |
| QSEHRA / ICHRA | Employer sets budget | Flexibility and cost control | Employees manage their own plan | Yes (if ACA plan) |
| HDHP + HSA | $200-$450/employee | Cost-sharing with younger teams | High deductible before coverage | Yes |
Does the Plan Cover Your Employees’ Doctors?
Network access is the detail most small business owners forget to check until an employee gets a bill they weren’t expecting. Always verify that the plan’s network includes the hospitals and specialists your team actually uses.
Key plan design differences to know:
- HMO: Lowest premiums, but employees must use in-network providers and get referrals for specialists
- PPO: More flexibility to see any doctor, but higher monthly premiums
- HDHP + HSA: Low premiums paired with a tax-free savings account employees use for out-of-pocket costs
For most small teams in Tulsa, a PPO or HDHP gives the right mix of flexibility and cost control.
Are You Leaving Tax Credits on the Table?
If your business has fewer than 25 employees and you pay at least 50% of employee-only premiums, you may qualify for the Small Business Health Care Tax Credit worth up to 50% of your contributions. This credit is only available through SHOP plans.
That’s a real dollar-for-dollar reduction in your tax bill, not just a deduction. A business paying $60,000 a year in premiums could get $30,000 back.
Not sure if you qualify? Contact Lannum Insurance Services and we’ll walk through your eligibility with no pressure.
Frequently Asked Questions
How do I choose the best health insurance for my small business?
Start with a clear monthly budget per employee, then survey your team on their coverage priorities. Compare group plans, health sharing, and HRAs side by side. Working with an independent advisor gives you access to options across multiple carriers, not just one.
What is the most affordable health insurance option for small businesses?
Health sharing plans typically run 40% less than group insurance at $300-$500 per member per month. HDHPs paired with HSAs are another cost-effective path. HRAs let you set a fixed monthly budget with no surprise premium increases at renewal.
Should I use an insurance broker to choose a plan?
Yes. An independent broker compares options across multiple carriers, helps you qualify for tax credits, and handles enrollment paperwork. A broker tied to one carrier only shows you their plans, not the full market.
What plan type is best for a small business with a tight budget?
An HRA or health sharing plan usually makes the most sense for tight budgets. With an HRA, you set a fixed monthly reimbursement and employees choose their own coverage. Health sharing premiums run about 40% lower than group plans, though pre-existing conditions face a waiting period.
Do small businesses have to enroll during open enrollment?
No. Small group health insurance has no limited enrollment period. You can start a plan at any time of year. If you enroll in a SHOP plan by the 15th of the month, coverage typically starts on the 1st of the following month.
Ready to Make a Confident Coverage Decision?
Choosing small business health insurance comes down to four things: knowing your budget, understanding what your team actually needs, picking the right plan type for their health profile, and not leaving tax credits unclaimed.
You don’t need to figure this out alone. The right independent advisor shows you the full picture across plan types and carriers, helps you run the numbers on tax credits, and stays available after enrollment when questions come up.
At Lannum Insurance Services in Tulsa, Oklahoma, that’s exactly what we do. Have questions about coverage for your team? Schedule a free consultation, or explore our medical insurance services to see what we offer.